As a continuation of our previous piece on laying the foundation of a startup, we bring to you the next steps. After the first few quintessential elements of starting up, let us discuss for more. Excited? Read ahead to find out.
• Intellectual Property: Get it secured
Intellectual property (IP) basically refers to the intangible property as a result of creativity. It includes patents, copyrights, trademarks, etc. For instance, while starting up you have created a new technology or product, it becomes an intellectual property. As the cut-throat competition prevails in the market today, securing your IP is significant. It gives a differentiating factor to your business.
• Decide your business incorporation
No matter what industry you are entering into, incorporating is a must. It is the process of converting your business into a legal entity. For this, there are majorly three designs – LLC, a C corporation or an S corporation. Both LLC and S corporation may have some tax exemptions, whereas C corporation is a taxable entity. Apart from differences in taxation, other issues also need to be well thought of. For instance, equity compensation, personal liability, paperwork, regulations depend upon the type of legal business structures. So, discuss it with your legal and tax consultants to decide the best option.
• Writing an effective business plan
‘Quality is the best business plan’. – John Lasseter (Chief creative officer at Pixar)
It is of utmost importance to have an effective business plan. A written business plan tells you various aspects of your business idea. Once your concept or idea is in place, you can see how feasible it is, what direction you want to take it ahead. Likewise, it also gives you a clear idea of what next step to take on. For an effective business plan, think and use research in a proper way to design the roadmap ahead.
By using these quintessential steps for starting up, you can ensure a good start of converting your business idea into a startup.